1. CORPORATE INFORMATION
Riddhi Siddhi Gluco BioLs Limited (the Company) has made investment
in Wind Farms and is currently engaged in generating and selling power.
During the year, the Company has altered its object clause in the
Memorandum of Association and it has started business of trading in
agriculture and metal commodity items.
During the previous year, as per the Composite Scheme of Arrangement,
the Company had transferred its Corn Wet Milling business to Riddhi
Siddhi Corn Processing Private Limited (Refer Note 36).
2. Contingent liabilities and commitments (to the extent not provided
(Rs. in Lacs)
Particulars As at As at
March 31 2013 March 31 2012
i (i) Claims against the Company
not acknowledged as debt
a. Excise Duty 2,486.48 2,412.08
b. Sales Tax 1.00 1.00
c. Service Tax 27.60 8.03
d. Income Tax 921.13 921.13
e. Other Maters - 35.00
Total 3,436.21 3,377.24
Estimated amount of sales contracts
to be executed against 13,250.82 -
the stock in trade lying as an inventory
a. Towards Levy of excise duty, including penalty but other than
interest thereof on account of dispute in classification of finished
goods, against which Company has appealed before Appellate Authorities
and Commissioner (Appeals).
b. Towards penalty charges on account of dispute for sales tax demand
against the pending form 19 to be submitted to tax authorities.
c. Towards Service Tax demand on refund claimed on services availed on
export of goods i.e. CHA Services, Port Services and Goods Transport
d. The Company has received the High Court order on 1st May, 2012 and
hence had not paid advance income tax pursuant to the gain on demerger
and sale of Corn Wet Milling undertaking. The Company has filed the
Interest waiver application as required under CBDT Circular
400/29/2002-IT(B) for waiver of interest under section 234 A, B and C
of the Income-tax Act, 1961. Hence, the amount Rs.921.13lacs (Previous
Year: Rs. 921.13 lacs) pertains to the possible claim of interest in case
the waiver application is not accepted.
e. Others include possible claim relating to dispute with workers of Rs.
NIL (Previous Year: Rs. 3 lacs) and a claim in case lodged against
Company for an accident in Maize Starch Powder(MSP) plant of Gokak Unit
amounting to Rs. NIL (Previous Year:Rs. 32 lacs)
It is not practicable to estimate the timing of cash outflows, if any
in respect of matters (a) to (e) above, pending resolution of the
proceedings with the respective appellate authorities. 28. Employee
a. Defined Benefit Plan
The Company has a defined benefit gratuity plan. The unfunded plan
provides for a lump sum payment to employees, at retirement, death
while in employment or on termination of employment, of an amount
equivalent to 15 days salary for each completed year of service or part
thereof in excess of six months. Vesting occurs upon completion of five
years of continuous service.
During the financial year ended 31st March, 2012, pursuant to the
Scheme referred in Note 33 all the employees of the Company have been
transferred to RSCPPL with effect from 1st October, 2011 and hence the
related employee benefit balances have also been transferred.
The following table summarizes the components of net benefit expense
recognised in the Statement of Profit and Loss and funded status and
amount recognised in the balance sheet for the plan.
3. Segment Reporting
a. The Company has disclosed business segment as the primary segment.
Segments have been identified taking in to account the nature of the
products, the differing risks and return, the organization structure
and internal reporting system.
b. After the Demerger of Corn Wet milling business and its transfer to
the Resulting Company in the previous year, the Company''s Operations
pre-dominantly relates to Wind Energy Generation and trading of
agriculture and metal commodity items. Accordingly, the Company has
identified Wind Energy Generation and Trading business as the
operating segments, consisting of sale of wind power and trading of
commodity items respectively. Others consist of investment activities
which comprises of less than 10% revenues. The Company has transferred
the starch business to Riddhi Siddhi Corn Processing Private Limited
(RSCPPL) with effect from 1st October, 2011 and accordingly the starch
business has been reported as discontinued operations.
c. Secondary segment reporting is based on the geographical location
of customers. Since, company has its operation activities limited to
India only; no separate disclosure pertaining to secondary segment
based on geographical location has been given.
4. On 22nd and 23rdSeptember, 2011, the Company was subjected to
Search, Survey and Seizure operation by the Income Tax Department under
section 132 and 133 of the Income Tax Act, 1961 (the Act'').
Subsequent to the above, during the year ended on 31st March, 2012, the
Company had made disclosure of an unaccounted income of Rs.1,609.75 Lacs
under section 132(4) of the Act and the same had been shown as
exceptional item under Discontinuing Operations in the Statement of
Profit and Loss and the unaccounted income of Rs.1,609.75 lacs had been
accounted as utilized towards land development at Gokak factory
premises during the year ended on 31st March, 2012. The return of
Income for the Assessment Year 2012-13 has been filed accordingly and
the Company has provided for the resultant tax liability. The
assessment is pending and the management does not anticipate any
further tax liability.
5. Based on the information available with the Company, there are no
suppliers registered as micro & small enterprises under Micro, Small,
Medium Enterprises Development Act, 2006. Accordingly, no interest is
due or payable or paid or accrued and remaining unpaid to such
6. The Company had taken certain assets like office, residential,
warehouses etc. on operating lease. These leasing agreements are
cancellable and usually renewable on the mutually agreed terms. The
aggregate lease rentals charged to the Statement of Profit and Loss are
Rs. NIL lacs (Previous Year: Rs. 208.05 lacs under Discontinuing
7. The Company has entered into the leasing arrangement in respect of
the godown with Riddhi Siddhi Corn Processing Private Limited for a
period of 24 months, with an option to vacate by giving notice period
of three months. The future lease rental income for the these lease
arrangement is as under:
8. As per Honorable High Court of Gujarat''s order approving the Scheme
of Arrangement (the Scheme) in the nature of demerger, from the
Appointed Date of 1st October, 2011 with Effective Date of 29th May,
2012, the Corn Wet Milling undertaking was transferred to Riddhi Siddhi
Corn Processing Private Limited (RSCPPL). The Scheme and related
transactions for demerger and reduction in share capital was given
effect to in the audited financial statements for the year ended 31st
As part of the Scheme, all assets and liabilities of the Corn Wet
Milling undertaking including employees and their related liabilities
were transferred to the RSCPPL, however contingent liabilities related
to the period prior to Appointment Date i.e. 1st October 2011, arising
out of regulatory, tax, labour, operational or environmental matters
etc. remained with the Company.
As per the High Court Order, resultant excess of Rs.63,807.06 lacs being
the amount of net sale consideration and net value of assets and
liabilities transferred had been added to the capital reserve under
reserves and surplus and accordingly Corn Wet Milling undertaking was
disclosed as discontinued operations in the prior year financial
statements. In view of specific option granted by the Honorable High
Court of Gujarat''s order, during the current financial year, the
Company has transferred the said amount to the General Reserve.
9. The Statement of Profit and Loss for the year ended 31st March,
2013 contains the income from commodities trading transactions and Wind
Mill operations, while the corresponding year ended 31st March, 2012
contains only income from Wind Mill operations. Hence, to that extent
current year results are not comparable with the previous year results.
10. Previous year figures have been re-grouped/re-classified wherever
necessary to correspond with the current year classification/